Multiplex to sell its slice of retirement venture

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Multiplex Group has had a small selling spree, agreeing to sell
its 45 per cent interest in a development joint venture between
itself, Primelife Corp and Babcock & Brown.

The group will sell its 4 million shares in the joint venture to
Babcock & Brown for $1.25 per share, which is equal to the
group's original investment.

Multiplex has also decided to sell the Sands Macdougall building
in West Melbourne through Knight Frank's Nick Peden.

The six-level office premises at 355-377 Spencer Street was part
of a large portfolio bought by Multiplex in May this year for about
$40 million.

The decision to exit the joint venture, which was established to
develop new retirement villages and aged care facilities, comes
after a shift in strategy by the Primelife Board.

The was originally intended for the joint venture to investigate
opportunities to develop large scale projects in the retirement and
aged care sector.

Given the existing scale of Multiplex Group's operations in the
development sector, the group had been attracted to the original
strategy to target larger projects.

But the decision to focus more on developing smaller villages
along the east coast of Australia is better suited to Primelife's
business model, which attracts revenue from a mixture of management
fees and development fees.